If you have had a situation recently where your emergency fund was there to help you get through a temporary financial crisis, you are now probably looking for some smart money moves to help you replenish the important fund.
While having to spend your savings on unexpected expenses is not ideal, it’s a good thing you were prepared and planned for this type of financial situation. Having a back-up plan in place for when things go awry is a smart decision, so we have included some reasons why having an emergency fund is important and also some tips from the financial experts at Members Plus Credit Union about how you can rebuild your savings again so you will be ready for unexpected expenses in the future.
Importance of an Emergency Fund
Life is full of unexpected surprises and financial ones that you are not prepared for can really wreak havoc on your lifestyle and finances. Having an emergency fund with money to use when you do have an occasion when extra money is needed can relieve the stress of the situation and help keep your finances and budget on track.
Why Replenish Your Emergency Fund?
If it’s time to replenish your emergency fund, you already understand how much help it was to have the extra money you needed readily available from your saving efforts. Planning to replenish your emergency fund now is a smart money move and a great way to ensure you are financially prepared when the next emergency strikes.
Here are some tips to help you rebuild your savings and have the money you need when you need it!
5 Easy Ways to Rebuild Your Emergency Fund
1. Automate Your Savings
Automatic transfers set up to be deposited directly into your emergency fund account at Members Plus is a great way to start rebuilding your savings. If possible, contribute at least five percent of your paycheck each payday to your emergency fund for a solid back-up plan for unexpected expenses. Your employer can help you arrange the automatic deposit of money into your emergency fund so you will be prepared financially when things like home repairs or a job loss occurs.
2. Cut Unnecessary Expenses
Reducing monthly expenses can give you the extra money you need to rebuild your emergency fund with a savings account at MPCU. Find ways to reduce your monthly costs, including existing bills like cell phones, cable and streaming services, utilities, dining out, and more. Create a monthly budget to help you better manage your finances and rebuild your emergency fund quicker.
3. Increase Your Income
The best and most efficient way to save more money is to earn more money! Taking on a regular part-time job in addition to your existing career is one way to increase your monthly income. You may also consider freelance opportunities that utilize your existing talents or even pick up a few hours during the holidays to help boost your earning potential to rebuild your emergency fund balance.
4. Save Windfalls
If you want to quickly rebuild your emergency fund savings, make it a habit of depositing any large sum of money that comes your way directly into your savings account. From income tax refunds and bonus checks to cash gifts and money from selling personal items – it is smart to save as much as you can for unexpected expenses. MPCU can help your savings grow even faster with a Members Plus Checking with competitive rates or a special Club Account that allows you to save for a specific purpose or event.
5. Prioritize Savings in Your Budget
Make saving money each month a priority to rebuild your emergency fund as fast as possible. Including your savings deposits in your monthly budget and saving money via direct deposits is a smart money move that can add up quickly for you. Making saving money a priority now can save you a great deal of financial issues when you have to pay for things for which you had not budgeted. It can also save you from late or missed payments, which can adversely affect your credit score, adding more unnecessary stress to the situation.
Staying Financially Disciplined
The financial experts at Members Plus Credit Union are here to help you manage your money in the best possible way. We will listen to your needs and be there to help you choose the best account to start or rebuild your emergency fund savings journey. We invite you to contact our team today to learn more about how you can start saving for unexpected expenses that could happen at a moment’s notice with one of our savings accounts at MPCU.
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